5 Mistakes to Avoid in a High-Asset Divorce
Wealthy spouses headed for divorce often fear losing the lifestyle and standard of living to which they’ve become accustomed. The thought of emerging from divorce with diminished financial standing can lead a spouse to take actions that actually stand in the way of achieving favorable property settlements. Here are some of the most common mistakes in high-asset divorces that should be scrupulously avoided:
- Attempting to hide assets or debts from the other spouse — In a divorce, you are required to disclose all your assets and debts on official forms. There is also a process called discovery, during which each spouse’s lawyer scrutinizes the other spouse’s property and investigates any irregularities. If you are found to be hiding assets or debts, the court can impose fines and award your spouse a larger share of the estate.
- Failing to locate and value all assets — In a high-asset divorce, the couple’s property might include investments, deferred stock options, intellectual property, passive income, multiple homes, valuable cars and an ownership stake in a business. Working with the right legal and financial team, you should take pains to locate every asset and have it valued appropriately. Failing to do so can skew the end result and leave you with too little property after divorce.
- Being motivated by revenge or a desire to embarrass — Don’t let your emotions lead you to make irrational decisions. It is a waste of assets to attempt to litigate every tiny issue and drag your soon-to-be ex through the mud. Seek as efficient a resolution as possible so that you can move on with your life.
- Refusing to accept any lifestyle changes — After divorce, you’ll probably have to adjust to some new realities as to the availability of resources. It may be hard to keep up the lush lifestyle you enjoyed during the marriage, especially if you are not the higher-earning spouse. Don’t let a sense of entitlement stop you from pursuing a productive outcome in property settlement negotiations.
- Not hiring the right legal team — High-asset divorces require special care and handling. Engaging in no-holds-barred litigation is usually not the best way to achieve optimal results. You need to choose a divorce lawyer with a track record of success in protecting clients’ financial interests in complex cases. Such an attorney should be able to call on the expertise of sophisticated accountants, wealth advisors, tax specialists and others who can apply their talents to your case.
Bryan L. Salamone & Associates, P.C. is Long Island’s go-to law firm for high-asset divorce. Our attorneys are highly experienced and ready to protect your financial future. Call 1.631.479.3839 or contact us online to arrange a consultation. Our office is in Melville and we serve all of Long Island.